Micron Technology, Inc. (MU) Turnaround Brings In Options Bulls

Micron Technology, Inc. (MU) call buying has picked up

Digital Content Group
Feb 10, 2015 at 11:15 AM
facebook X logo linkedin


Micron Technology, Inc. (NASDAQ:MU) has reached a new supply agreement with Inotera Memories. In response, the stock has added 5% to trade at $29.78, as it rebounds from yesterday's 2% fall. Bullish speculators appear to be stepping up to the plate, with calls crossing the tape at 1.4 times normal intraday volumes.

The option seeing the most action is the weekly 2/13 30-strike call, where it appears some traders are choosing the buy-to-open route. These speculators need MU to topple $30 by this Friday's close, when the contracts expire. The likelihood of these options moving into the money by week's end has increased dramatically with today's gains, as the delta for the contracts has jumped to 0.42, compared to just 0.12 yesterday evening.

The focus on calls is an unusual sight in MU's options pits, as puts have dominated of late, relatively speaking. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio of 0.39 outranks all but 10% of similar readings from the past year.

On the other hand, analysts have remained almost completely bullish toward the shares. In fact, 82% of covering brokerage firms deem the stock worthy of a "buy" or better.

Micron Technology, Inc. (NASDAQ:MU) has struggled from a technical perspective, dropping roughly 15% in 2015. Also, MU is currently testing its 20-day moving average, above which the security hasn't closed since Dec. 31.

Daily Chart of MU Since December 2014 With 20-Day Moving Average
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI